The LINK token has reached its highest price since March 2022, highlighting oracle networks and their importance in the cryptocurrency and decentralized finance (DeFi) ecosystem.
Link outperforms the cryptocurrency market
Chainlink’s LINK token reached a new high this Friday, February 2, 2024, a price level not seen since March 2022. Indeed, the LINK price currently stands at around $18.
As the chart below illustrates, the LINK price is experiencing a period of strong growth. After bottoming out at 5 dollars between May 2022 and September 2023, it has resumed its upward trend, gaining 270% over the past 8 months.
Link price trend since 2021
This new record reached by the LINK token reflects investors’ enthusiasm for oracle blockchain tokens.
The PYTH token, launched by oracle Pyth Network in November 2023, is also benefiting from this momentum. Indeed, PYTH’s share price has reached an all-time high of almost $0.60, representing a rise of around 900% since its inception. However, the latter recently received a small boost following its listing on Binance.
How can we explain the performance of oracle tokens?
The recent performance of tokens associated with oracle blockchains can largely be explained by the renewed activity on decentralized finance (DeFi) protocols, particularly those dedicated to the tokenization of real-world assets (RWAs).
Tokenization has been a major success for several months now. This method involves creating, on the blockchain, a digital representation of a real asset, such as real estate or a share in a company.
Tokenization gives traditional financial assets the advantages of blockchain, making them easier and more accessible to hold and trade.
Oracles play an essential role in the tokenization process, providing DeFi protocols with accurate data on tokenized assets, including their real-time price. Without oracles, blockchains would remain compartmentalized systems with little public access.
They are proving to be a fundamental element in the cryptocurrency ecosystem, and widespread adoption depends on their existence.
